Magnetic stripe-bearing documents, for example credit cards, banking cards, debit cards, and identification cards are a type of data-bearing instrument commonly used in a variety of transactions. Account data is typically recorded on an electronically readable component on the card. In many cases, an electronically readable component is a stripe of magnetic material on the card. The data may include the issuing bank ID, account number, account holder's name, identification number, and/or security codes for the account and/or user.
When a magnetic stripe card, such as a credit card, is presented for payment, the magnetic stripe is read by a point-of-sale (POS) terminal, which extracts the data, sends it for validation to the bank, and waits for acceptance or rejection of the payment. If the transaction is accepted, the POS terminal may print a voucher (or obtains an electronic signature) and may print (or email) a receipt, and the merchant sees that the voucher is signed with the appropriate signature and provides the receipt with the purchased goods. The POS terminal can be a card reader or a device incorporating a card reader. A card reader typically includes at least a magnetic read head (or sensor) and supporting circuitry, such as a decoder and an encryption circuit.
The number on a credit card typically starts with six digits referred to as a bank identification number (BIN) and the remaining digits are referred to as the primary account number (PAN). Often the cardholder's name, the card expiration date, and a security code also appear on a credit card. The magnetic stripe on a credit card typically contains the PAN, cardholder name, and expiration date.
When a magnetic stripe card, such as an identification card, is presented for user authentication, the magnetic stripe can be read by a transaction terminal, which extracts the data, sends it for validation to an authentication server, and waits for acceptance or rejection of the user/s credentials. If the login attempt is approved, the transaction terminal may provide a confirmation notice such as an email or a notice placed on a computer screen. When the portal, to which access is sought, receives confirmation of the user authentication, the portal allows access to any protected or private areas being protected. A card reader typically includes at least a magnetic read head (or sensor) and supporting circuitry, such as a decoder and/or an encryption circuit.
Typically, a user's name, an expiration date, issue date, unique identification number, and the entity that provided the identification card (e.g., state, nation, or corporation) appear on an identification card. The magnetic stripe may include this information as well. A card reader typically includes at least a magnetic read head (or sensor) and supporting circuitry, such as a decoder and an encryption circuit.